SWITCHING to Universal Credit is costing Brits thousands of pounds and claimants aren’t properly told, MPs have warned.
A scathing report from the Work and Pensions Committee today said the Department failed to inform or protect Brits from going onto the new six-in-one benefit and losing out cash.
And when claimants find out they are worse off than they were before they are trapped in the “lobster pot” with no way back.
Some Brits claimed they were incorrectly advised to claim for the new system by officials.
MPs said that Universal Credit should come with a health warning because it was so complicated to figure out.
Chair Frank Field, an independent MP said: “In the history of humankind, has there ever been an example of a government introducing a fundamental welfare reform and none of its employees being able to tell if it will leave people better or worse off?
“Hardly surprising that baffled and anxious claimants are finding themselves trapped in what the Department chillingly calls the “lobster pot” of Universal Credit, and with much less to live on as a result.
“The UC application page needs to come with a health warning, and anyone who gets inadvertently caught in DWP’s lobster pot should be compensated.”
Around 3 million families are expected to lose out on the new system, compared to 2.4million who will gain, the committee said.
But other experts think that there will now be more winners than losers.
Currently people only have to move over if they have a change in circumstance like moving house, working more hours or having a child.
But that also includes situations like when a disabled person gets the chance to move into an adapted house – they then will go onto UC too and could lose out.
Brits also have to make a claim for the new system when their partner dies too.
But soon the switch will begin to transfer three million people on the old legacy benefits system onto Universal Credit.
Amber Rudd confirmed last night that she would start the process this week, but won’t give MPs a vote in Parliament on it.
Up to 10,000 Brits in Harrogate will be swapped over, and the rest of the country will come at a later date.
Those who are moved over by the Government will have some of their cash protected to soften the blow.
The Sun wants to Make Universal Credit Work
UNIVERSAL Credit replaces six benefits with a single monthly payment.
One million people are already receiving it and by the time the system is fully rolled out in 2023, nearly 7 million will be on it.
But there are big problems with the flagship new system – it takes 5 weeks to get the first payment and it could leave some families worse off by thousands of pounds a year.
And while working families can claim back up to 85 per cent of their childcare costs, they must find the money to pay for childcare upfront – we’ve heard of families waiting up to 6 months for the money.
Working parents across the country told us they’ve been unable to take on more hours – or have even turned down better paid jobs or more hours because of the amount they get their benefits cut.
It’s time to Make Universal Credit work. We want the Government to:
- Get paid faster: The Government must slash the time Brits wait for their first Universal Credit payments from five to two weeks, helping stop 7 million from being pushed into debt.
- Keep more of what you earn:The work allowance should be increased and the taper rate should be slashed from 63p to 50p, helping at least 4 million families.
- Don’t get punished for having a family: Parents should get the 85 per cent of the money they can claim for childcare upfront instead of being paid in arrears.
Together, these changes will help Make Universal Credit Work.
Join our Universal Credit Facebook group or email UniversalCredit@the-sun.co.uk to share your story.
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Ministers have revealed a raft of measures to help pump more money into Universal Credit – which started with increasing the work allowanced by £1000 earlier this year.
However, other changes like reducing the amount of debts that have to be paid back each month, and the roll-on cash which is given when people start on Universal Credit, won’t start for years to come.
A DWP spokesperson said: “Universal credit helps people into work faster than the old system and provides targeted support.
“Around one million disabled households will gain an average of £100 more a month, and changes to work allowances mean 2.4 million households will be up to £630 per year better off.”
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